The IRS has announced that 401(k) and similar retirement plans may make hardship and loan distributions to victims of Hurricane Irma and members of their family who live and work in the disaster areas noted by FEMA as areas designated for individual assistance, which currently include the U.S. Virgin Islands, Puerto Rico and certain counties in Florida. (See list of counties designated for individual assistance at https://fema.gov/disasters) In addition, the IRS has relaxed the procedural and administrative rules that normally apply to such distributions. Hardship distributions must be made on account of a hardship resulting from Hurricane Irma and be made no later than January 31, 2018. Employers interested in offering this assistance can contact us or their provider to determine if an amendment to their plan is necessary. Click here for the IRS Guidance.
The IRS has also provided relief with regard to the filing of certain individual and business tax returns and certain tax payments. Click here for the IRS Guidance.